Assume that on January 1, 2017, Elmer's Restaurants sells a computer system to Liquidity Finance Co. for $659,000 and immediately leases the computer system back. The relevant information is as follows 1. The computer was carried on Elmer's books at a value of $571,000 2. The term of the noncancelable lease is 10 years; title will transfer to Elmer 3. The lease agreement requires equal rental payments of $107,249 at the end of each year 4. The incremental borrowing rate for Elmer is 12%. Einer is aware that Liquidity Finance set the annual rental to insure a rate of return of 10%. S. The computer has a fair value of $659,000 on January 1, 2017, and an estimated economic life of 10 6. Elmer incurs executory costs of $8,200 per year. (Use Accounts Payable Prepare the yournal entries for both the lessee and the lessor for 2017 to reflect the sale-leaseback agreement. No uncertainties exist, and collectibility is reasonably certain. To record amortization of profit on sale use Depreciation Expense account and not Sales Revenue account (Credit account titles are required, select "No Entry" for the account tities and enter 0 for the amounts. Round answers to O decimal places,e.g. 5o,250.) Click here to view factor tables Date Account Titles and Explanation Debit Credit (To record sale) (To record the lease.) (To record amortization of profit on sale.) CTo record depreciation.) To record parymert.) (To record purchase.) (To record the leaseback)